Econocom Group Se Class D · EURONEXT:ECONB
Econocom Group Se Class D — Investor Day (October 2017)
67 slides from Econocom Group Se Class D's investor day presentation, Oct 3, 2017
Slide 1: Investor Day
Slide 2: Agenda
for excellence AGENDA WHERE TO FOW Bruno Grossi
Slide 3: € for excellence
€ for excellence
Slide 4: Where to
WHERE TO
Slide 5: Our track-record
OUR TRACK-RECORD for excellence
Slide 6: Our track record - 2007-2012 horizon plan
OUR TRACK RECORD - 2007-2012 HORIZON PLAN ENVIRONMENT ACTIONS RESULTS Year zero of mobile web (1st iPhone, Android) Increasing financing and technology needs driven by digital revolution Financial crisis looming (1) Before amortisation of intangible assets from acquisitions Bold move into mobility D
Slide 7: Our track record - 2012-2017 mutation plan
OUR TRACK RECORD - 2012-2017 MUTATION PLAN ENVIRONMENT ACTIONS TARGETS Major digital disruptions facebook. UBER Q\airbnb Talents aspiration & entrepreneurial spirit Massive growth of digital assets Become a major operator of digital transformation Acquisition of Osiatis Services go from 2,300 to 8,5
Slide 8: Stock market performance
STOCK MARKET PERFORMANCE Average, 206 M 245 M market cap SHARES al iD) SHARES (million.euros) Correct ne ewe ne Oo — gee 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1) proforma after stock splits
Slide 9: Our group today
OUR GROUP TODAY for excellence
Slide 10: Our group today: A recognised enabler of digital transformation
OUR GROUP TODAY: A RECOGNISED ENABLER OF DIGITAL TRANSFORMATION afl! (& c.€3 BN c.11,000 revenue employees A EUROPEAN scale Our group today
Slide 11: Our group today: A recognised enabler of digital transformation
OUR GROUP TODAY: A RECOGNISED*ENABLER OF DIGITAL TRANSFORMATION er =e REVENUE one ig > A unique COMBINATION of EXPERTISES 10
Slide 12: Our group today: A recognised enabler of digital transformation
OUR GROUP TODAY: A RECOGNISED*ENABLER OF DIGITAL TRANSFORMATION A unique a COMBINATION - © of EXPERTISES % Jur group today cn
Slide 13: Our group today: A recognised enabler of digital transformation
OUR GROUP TODAY: A RECOGNISED ENABLER OF DIGITAL TRANSFORMATION Al >10%o Revenue CAGR 12-17e A differentiating MIXED-GROWTH model Our group today 12
Slide 14: "One Galaxy" a differentiator
em “ONE GALAXY” A DIFFERENTIAT magic makers - alter way infeeny -) + ea ie cineolia bizmatica econocomcaverin a) . ° asystel italia a . Gll=siei) elma ine ietal ~ a econocom brésil | ; jtrs a ; : histovery. * clever energies *
Slide 15: Market trends
MARIKET TRENDS for excellence
Slide 16: Four market trends support our strategic orientations
FOUR MARKET TRENDS SUPPORT OUR STRATEGIC ORIENTATIONS O1 O2 O03 Pace of digital All sectors Users have taken transformation in the game control accelerating B2C redefines standards O4 Usage overtaking ownership
Slide 17: Digital transformation market is accelerating
DIGITAL TRANSFORMATION MARKET IS ACCELERATING Digital ry transformation & consulting eo & projects loT / connected objects ion +10% CAGR +17% CAGR Cloud services IT market (excl. Platforms) c.€260 BN = nt B-4% CAGR +271% CAGR O PW Cyber-security# : @) Data analysis +12% CAGR - +40% CAGR J Note: Mark
Slide 18: All sectors in the game
ALL SECTORS IN THE GAME Transportation Late comers Low initial digital intensity Need help to kickstart their digital transformation IMPACT OF DIGITAL 50 Manufacturing Healthcare © e Uti Agriculture Government Early adopters Already on the edge Need to invest to stay ahead Telco & Media 45 Retail wm
Slide 19: Users have taken over and are redefining the standards
USERS HAVE TAKEN OVER AND ARE REDEFINING THE STANDARDS Digital users are All organisations EMPOWERED = have to ADAPT & a0) to the HIGHEST SPEAK UP B2C STANDARDS MUST-HAVE FOR OUR CLIENTS ain oy 2) in-depth knowledge Redesigned processes End-to-end of uses from users’ perspective super quality
Slide 20: Usage is increasingly replacing ownership
USAGE |S INCREASINGLY REPLACING OWNERSHIP Paid “as a Service” vs. owned 19
Slide 21: New positioning
NEW POSITIONING for excellence
Slide 22: Emotion and impact, right from the first click
EMOTION AND IMPACT, RIGHT FROM THE FIRST CLICK, TIME AFTER TIME
Slide 23: Digital users have taken control
thy, DIGITAL USERS HAVE TAKEN CONTROL: THEY’RE THE NEW MASTERS OF THE GAME
Slide 24: Video
Slide 25: Our spirit
OUR SPIRIT ZL = _ M6 OQ CLICK SPIRIT weil THE EXTRA-MILE af) . ATTITUDE, =) COMPANIES NEED ADVICE AND SUPPORT FROM START TO FINISH — AND BEYOND
Slide 26: Vision / mission / spirit
VISION CLICK POWER PROMISE MAGICAL CLICK MISSION CLICK MATCH SPIRIT CLICK SPIRIT 25
Slide 27: New ambition
NEW AMBITION for excellence
Slide 28: E for excellence ambition for 2022
E FOR EXCELLENCE AMBITION FOR 2022 REVENUE RECURRING OPERATING PROFIT Pn per tttt teeny ge ~ LY c.€4.0 bn c.€300 m y rs 7.5% c.€3.0 bn i ; c.€150 m 2017e 2022e 2017e 2022e OO O®@ arriiion 27
Slide 29: Break
BREAK for excellence
Slide 30: Robert Bouchard
ROBERT BOUCHARD COO
Slide 31: Robert Bouchard, Martine Bayens, Sebastien Musset
ROBERT BOUCHARD MARTINE BAYENS SEBASTIEN MUSSET COO SATELLITES TRANSFORMATION, RESOURCES AND FRANCE
Slide 32: Strategic plan built on pillars
STRATEGIC PLAN BUILT ON 4 PILLARS EXCELLENCE GROWTH SATELLITES M&A IN DELIVERY RELAYS & OFFERS end-to-end digital solutions & extend financing beyond | traditional IT
Slide 33: E for excellence ambition for 2022
E FOR EXCELLENCE AMBITION FOR 2022 REVENUE RECURRING OPERATING PROFIT 2017e 2022e 2017e 2022e B32
Slide 34: Create the magical click
CREATE THE MAGICAL CLICK VALUE * Business-transformative solutions * Boost of organizations digital agility USER * Understanding of uses EXPERIENCE * Passion for technology * Measure of users’ and clients’ satisfaction OPERATIONAL - Highest B2C standards EXCELLENCE * Processes and automation 33
Slide 35: Revenue growth drivers (estimates)
REVENUE GROWTH DRIVERS (ESTIMATES) c.€3.0 bn 2017e 0.4-0.6 Excellence in delivery & offers Headwinds Growth relays 0.2-0.3 Fe Satellites =n, iG. M&A c.€4.0 bn 2022e B4
Slide 36: ROP growth levers (estimates)
ROP GROWTH LEVERS (ESTIMATES) c.150 M 2017e 80-90 Excellence in delivery & offers Headwinds Growth relays 25-35 Fe Satellites =n, iG. M&A c.300 M 2022e 35
Slide 37: Excellence in delivery & offers
—EXCELLENCE IN DELIVERY & OFFERS for excellence
Slide 38: Lever "Excellence in delivery & offers"
LEVER 1 “EXCELLENCE IN DELIVERY & OFFERS” 80-90 25-35 25-35 300M 20226 >25 tangible initiatives across 3 businesses c.€30-40M additional ROP Products & Solutions Technology Management & Financing (TM&F) Services 37
Slide 39: Products & solutions initiatives
PRODUCTS & SOLUTIONS INITIATIVES CREATE USE- New ”“B2B2C” web platform 3 > BASED SERVICES Services targeting the user ENHANCE VALUE Advanced customization THROUGH > EXPERTISE Enriched perceived quality More Products EXTEND BUSINESS > More Partners SURFACE Extend European foothold 6M assets procured
Slide 40: Video
Slide 41: Technology management & financing
TECHNOLOGY MANAGEMENT ®& FINANCING CREATE USE- BASED SERVICES Green solutions Performance and “per-use” contracts ENHANCE VALUE Second hand reselling platform leased devices of which 70% fleet-managed THROUGH Leverage lifecycle data to extend EXPERTISE “pay per use” capabilities 7™M _ Extend asset s
Slide 42: Video
Slide 43: Services initiatives
SERVICES INITIATIVES CREATE USES BASED SERVICES OneDesk: "self-serve" digital workplace OneGate: hybrid infrastructure Management “cockpit” Predictive maintenance ENHANCE VALUE Organization by apps & infra expertise Al, data analytics, automation, THROUGH chatbot, robotics, etc. EXPERTISE . Infrastr
Slide 44: OneDesk: reinventing the workplace
III onedesk s a 8 Ned @ Quiest-ce qui vous ameéne ici? ® Fo & © ONE DESK: RE-INVENTING THE WORKPLACE Innovate differently: get the inspiration from best-of-breed B2C standards to transform the relationship with employees 43
Slide 45: Video
Slide 46: Going beyond: data analytics
GOING BEYOND: DATA ANALYTICS ENHANCE VALUE THROUGH EXPERTISE EXTEND BUSINESS SURFACE 45
Slide 47: Video
Slide 48: Growth. Relays
GROWTH. RELAYS for excellence
Slide 49: Lever "Growth relays"
LEVER 2 “GROWTH RELAYS” Develop cove aos ee Capitalising end-to-end on our unique digital com know-how solutions Delivering ~ Extend ; c. €40-50M financing 20226 additional ROP beyond traditional IT
Slide 50: End-to-end digital solutions
END-TO-END DIGITAL SOLUTIONS BUILD ON ECONOCOM'S KEY STRENGTH ENHANCE VALUE THROUGH EXPERTISE EXTEND BUSINESS SURFACE END-TO-END SOLUTIONS a9
Slide 51: End-to-end digital solutions, powered by Econocom
END-TO-END DIGITAL SOLUTIONS, POWERED BY ECONOCOM Simplicity Customization Flexibility Unique Responsibility, from think to run Access to “pay-per-use” financing BOOSTS DIGITAL AGILITY
Slide 52: Video
Slide 53: Develop end-to-end digital solutions
DEVELOP END-TO-END DIGITAL SOLUTIONS a» €0,8-0.9 BN Integrated and pay- per-use digital solutions to represent c20% of sales in 2022 €0.5 BN Margin of 7-10% c50% of the additional revenue will be replacing 2013 2014 2015 2016 2017e 2022e existing business @ Integrated Digital Solutions in "pay per u
Slide 54: Extend financing beyond traditional IT
EXTEND FINANCING BEYOND TRADITIONAL IT Econocom has the know-how to finance large & complex modernization projects “Digital” is moving Organisations face way beyond a financing challenge traditional for their IT departments modernization
Slide 55: Extend financing beyond traditional IT
EXTEND FINANCING BEYOND TRADITIONAL IT +€150-200 M Leverage our internal Finance innovative refinancing company (EDFL) “pay-per-xx” business models Develop structured finance Additional revenue in structured finance in 2022
Slide 56: Satellites
SATELLITES for excellence
Slide 57: One Galaxy: creating value
ONE GALAXY: CREATING VALUE @ a Organic growth of Satellites (%) Cyber-security Mobile apps 15% 11% 8% Web apps/cloud Digital Signage Consulting H1 2016 2016 H1 2017 Satellites 56
Slide 58: Video
Slide 59: Carry our satellites to further growth
CARRY OUR SATELLITES TO FURTHER GROWTH +€200-300 M (double digit organic growth) +€25-35 M Revenue ROP increase increase 17-22e 17-22e Access to econocom’s client portfolio - Attract talents Lead generation and major deals supported by crossed incentives European expansion spurred by Econocom networ
Slide 60: Mobility for retail
MOBILITY FOR RETAIL WAREHOUSE & LOGISTICS RIVE-TO-STORE Inventory, Labelling M-coupons shop restocking, live pricing & promotions intershop transfers Promotions Service Process E-commerce Repair & after-sales Geofencing Industrial-grade Order & Pay private wifi Assisted sales, product info & order,
Slide 61: Security: a top priority of 100% of digital projects
SECURITY: A TOP PRIORITY OF 100% OF DIGITAL PROJECTS dedicated to Information Systems and loT Global ransomware attack causes turmoil © 28 June 2017 | Techn fv @& share Your inportant files are encrypted f you see this text, then your files are no longer accessible, beca ave been encrypted. Perhaps
Slide 62: M&A
M&A for excellence
Slide 63: M&A: an integral part of the strategy
M&A: AN INTEGRAL PART OF THE STRATEGY te9 “ul DEPLOY INVEST "ONE GALAXY" IN HIGH VALUE ACROSS EUROPE SEGMENTS Roll out the model Create a European in Germany and the UK consulting brand Complement foothold Data analytics in the other European geographies loT / connected objects MBA 62
Slide 64: Conclusion
CONCLUSION for excellence
Slide 65: € for excellence
€ for excellence
Slide 66: Thank you
THANK YOU
Slide 67: Q&A
O2A